Home Office Deduction

Home Office Deduction

  1. You get to deduct the cost of commute from your home office to work office
  2. You get to deduct cost of your home office ~$1500 per month or more (if using actual expense method)

IRS Publication 587 ( – exclusive use, regular use and have no other fixed location where you conduct substantial administrative/management activities of your trade or business.

A taxpayer who is an employee may deduct expenses attributable to a business use of a residence described in § 280A(c)(1) ( only if that use is for the convenience of the taxpayer’s employer.

To claims this deduction: Fees for us to prepare: $500

  1. We will prepare the letter that will “Make your corporation write you a letter stating that you must find office space and that space may be in your home.” Do not rent the office in your home to your corporation.
  2. We will prepare the document that “Have your corporation reimburse your home office expenses to you as an employee business expense.”
  3. Complete IRS Form 8829 showing your home-office expenses for the year. Planning tip. Do not file this form with your tax return. Instead, attach the form to an expense report that you give to your corporation as the basis for corporate reimbursement to you for the home-office expenses.

What you need to maintain:

Your corporation gets the deduction for its reimbursement of your employee expenses. But with this deduction comes the need for proof. Make sure you submit proof to your corporation that backs up the deduction—for example:

  1. Receipts for expenses
  2. Photos that show the office set up for exclusive business use
  3. A logbook, for at least 3 months, that shows use of the office for more than 10 hours a week.